Tether, a prominent stablecoin issuer, has recently made a significant investment into the Arcanum Emerging Technologies Fund II, a venture capital fund focused on supporting decentralized technologies. This partnership aims to accelerate the development of the bitcoin ecosystem, particularly at the intersection of blockchain and artificial intelligence (AI), alongside other areas including blockchain infrastructure, payment innovations, and privacy-focused technologies within the broader Web3 landscape.
According to a press release issued by Tether on 27 December, Paolo Ardoino, CEO of Tether and chief strategy officer at Holepunch, articulated the importance of resilient technology in today's global context. He stated, “In a world increasingly shaped by geopolitical tensions and macroeconomic uncertainty, the need for resilient technology to safeguard our freedoms has never been more crucial.” Ardoino further expressed pride in partnering with Arcanum Capital to empower individuals with the necessary tools and knowledge to protect their sovereignty.
The fund under Arcanum will place particular emphasis on supporting companies that utilise Tether’s stablecoin alongside Holepunch’s technology, which facilitates the development of serverless applications. This focus highlights a growing trend towards decentralisation and aims to enhance the resilience, security, and equity of digital applications.
James McDowall, managing partner of Arcanum Capital, highlighted the significance of Tether's investment, stating, “Tether’s contribution not only signals a strong vote of confidence in us as asset managers, but also validates our unique mission and approach.” He added, “Our passion lies in the transformative technologies we invest in, and we are proud to have Tether alongside us in supporting this mission.”
The emergence of stablecoins and crypto payments has begun to reshape the landscape of both consumer and business transactions. According to PYMNTS, the underlying technology of stablecoins and crypto — blockchain — is creating opportunities for innovation, driven by its transparency, security, and programmability. Stablecoins are increasingly viewed as bridging the gap between conventional financial technologies and cryptocurrencies, thus combining the efficiency and transparency of blockchain with the familiarity and stability of fiat currencies.
Tether is particularly noteworthy in this domain, as it issues USDT, recognised as the largest stablecoin globally, comprising nearly three-quarters of the stablecoin market. However, recent regulatory developments have prompted Tether to withdraw its issuance and operational support for its euro-pegged stablecoin, EURT, within the European Union, in light of the new Markets in Crypto-Assets Act (MiCA).
Overall, this latest venture by Tether reflects a significant trend in the integration of AI and blockchain technologies, as well as the push towards decentralisation, with potential implications for how businesses leverage these innovations in the future.
Source: Noah Wire Services